Should I Finance My First Car?: Essential Tips & Things to Consider
Buying your first vehicle is an exciting milestone, but it can also be a bit overwhelming. With the proper knowledge and our top tips, you can navigate how to finance your first car with confidence. At Preston Ford of Keller, we’re proud to be a proud member of the Preston Automotive Group, which is comprised of car dealerships that finance first-time buyers. Here’s your user-friendly guide on how to finance your first car successfully at Preston Ford of Keller. Keep reading to learn more about when you should finance a car and fill out a quick credit application.
Understanding Your Needs and Budget:
If you’re pondering the question: “Should I finance my first car?” Don’t fret. We have the answers for you on how to finance your first car. Start by doing the following:
Assess Your Financial Situation
Start by mapping out how much you can comfortably afford for a monthly car payment. Consider your income and monthly expenses to find a realistic budget. Calculate your potential payments for your Ford with our reliable Payment Calculator tool. Just input your loan amount, interest rate, and any other required details.
Identify Your Lifestyle Needs
When deciding how to finance your first car, consider what you need in a car. Do you require fuel efficiency for long commutes, or are safety features a top priority? Reliability is key for heightened peace of mind, so factor that into your decision-making when browsing our inventory.
Research Car Prices
Take the time to research and compare the prices of new and used cars. Online tools can help you estimate the total cost of ownership, including insurance, maintenance, and fuel costs, ensuring you find a car that fits your budget.
Building Your Credit History
As a first-time car buyer, building your credit history is essential for securing a good auto loan and getting a favorable interest rate. A great credit score can help you qualify for better loan terms, lower interest rates, and lower monthly payments. Here’s how you can start building and improving your credit history to make your car-buying process smoother.
Importance of Credit for Financing
Your credit history plays a huge role in calculating your creditworthiness and the interest rate you qualify for. A good credit score can allow you to save money on interest and lower your monthly payments. On the other hand, a poor credit score can cause higher interest rates and higher monthly payments. This means that taking steps to improve your credit score can have a significant impact on your overall car purchase experience.
Choosing the Right Car for You
Knowing how to finance your first car also entails choosing the right car for you, which involves considering your lifestyle, budget, and personal preferences to ensure you find a vehicle that perfectly meets your needs.
New vs. Used
Decide whether you want a new or used car. New cars depreciate faster, while used cars often come with lower insurance costs and less depreciation. Weigh these factors to see what makes sense for you.
Compare Models
Look into different models that meet your criteria. Safety ratings, fuel efficiency, and overall reliability are essential factors. If you’re considering a used car, check its vehicle history report, and consider certified pre-owned options for added peace of mind.
Test Drive
Never skip the test drive! It’s crucial to experience how a car feels and performs before making a commitment. Head to Preston Ford of Keller for a test drive and find your perfect fit.
Financing Options for First-Time Car Buyers
Confused about car financing? We’ll break down the options for first-time buyers:
Explore First-Time Buyer Programs
Many loan lenders offer special financing options for first-time car buyers. These programs can provide valuable benefits, so be sure to research them.
Get Prequalified
Be on the lookout for lenders that offer prequalification or preapproval. This can give you a better idea of what rates and terms you might expect. Fill out an application online and get quick pre-approval today!
Consider a Cosigner
If your credit isn’t strong, consider asking a friend or family member with good credit to cosign your loan. This can help you lock in better financing options.
Explore Appreciation Programs
Ford offers a $500 bonus cash incentive to eligible first-time car buyers, including college graduates, military personnel, first responders, and Farm Bureau members. These kinds of incentives can significantly reduce the upfront cost of purchasing or leasing a new Ford vehicle from our Keller, VA, Ford dealer. This Ford incentive can be a valuable tool for first-time car buyers to lower their overall financing costs. By reducing the total purchase price, you may also qualify for a smaller loan amount. Lower monthly car payments and less interest paid over time can be a direct effect from this.*
Common Mistakes to Avoid
Now that you’re aware of how to finance your first car, here are some things you want to steer clear of during the process:
- Overspending: Don’t let emotions drive your purchase. Stick to your budget. Need help with this? Contact us, and we’ll be happy to help!
- Neglecting Safety: Choose a car that is both appealing and reliable.
- Skipping Research: Always compare prices and financing options before committing.
Should I Lease or Finance My First Car?
Deciding between leasing and financing your first car can be a tough choice. Leasing a vehicle offers lower monthly payments and the chance to drive a new car every few years. However, you won’t own the car and may face mileage restrictions. Financing, on the other hand, lets you own the car outright, but monthly payments are typically higher. Consider your budget, driving habits, and long-term goals to make the best decision. If you have any questions or concerns regarding leasing or financing your first car, contact us at Preston Ford of Keller where our finance team will be happy to assist you.
When is the First Payment Due?
Your first vehicle payment is due sometime between 30 and 60 days from the loan’s finalization date. The specific due date will be listed on your Promissory Note.
Take the Next Steps
Buying your first car is a significant decision, and it’s crucial to approach it with the right information. Keep your budget, lifestyle needs, and financing options in mind as you navigate this process. Take your time, don’t rush, and consider reaching out to a lender or financial advisor for support along the way. Now that you know how to finance your first car, it’s time for the exciting part. Fill out a finance application online and head to Preston Ford of Keller to find the car of your dreams!
*See dealership for details.
Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user “as is” without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Prices include all applicable rebates and require FMCC financing and exclude taxes, tags, and $799 dealer doc fee. Destination is included. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.
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